Best S&P; 500 Dividend Yield Stocks with Strong Expected Profitability: COH, EMN, CAT, UNH
By:NewsyStocks   Monday, July 18, 2021 3:24 PM

Companies paying high dividends now may not pay any dividend in the future. That's why it is important to understand that investing only in dividend stocks may not be profitable in the future. Therefore, we decided to bring you a list of companies on the Standard & Poor's 500 index that have strong sources of future profitability that will allow continued dividend payments.

Coach Inc. (NYSE: COH) has a market capitalization of $19.2 billion and has a current dividend yield of 1.37 percent. The company's payout ratio is at 21 percent. The quarterly sales growth for the company has declined during the last quarter by 24.81 percent. However, the expected earnings growth rate over the next 3 years to 5 years is 14.83 percent. The annual return on equity on the stock was 48.82 percent. The company has a high P/E ratio of 22.73 and an extremely high P/B ratio of 11.02, suggesting the stock is overvalued. However, the expected earnings for the company are good, which means that the P/E is going to be high as the expectations from the company are also high. COH is trading higher by 0.23 percent to $65.63.

Eastman Chemical Co. (NYSE: EMN) has a market capitalization of $7.14 billion with a current dividend yield of 1.86 percent. The quarterly sales growth for the company grew 20.16 percent in the last quarter. The expected earnings growth rate over the next 3 years to 5 years is 7 percent. The annual return on equity on the stock was 26.12 percent. The company has a P/E ratio of 13.26, which is lower than the industry's average P/E of 20.76. The P/B ratio of the company is 3.94, and the P/S ratio is 1.15, suggesting that the company is poised for growth. EMN is trading lower by 0.78 percent to $100.04 a share on Monday.

Caterpillar Inc. (NYSE: CAT) has a total market capitalization of $70.5 billion and a current dividend yield of 1.61 percent. Quarterly sales growth for the company just increased marginally by 1.11 percent in the last quarter. However, the expected earnings growth rate over the next 3 years to 5 years is 13 percent. The annual return on equity on the stock was 25.39 percent. The company has a high P/E ratio of 19.15, a P/B ratio of 5.56 and a P/S ratio of 1.48, suggesting that the company's stock may look over priced, but it has opportunity for growth. Caterpillar's stock is currently trading higher by 1.06 percent to $107.75 a share.

Unitedhealth Group Inc. (NYSE: UNH) has a market capitalization of $56.23 billion and a dividend yield of 1.25 percent. Quarterly sales increased 5.83 percent the last quarter. However, the expected earnings growth rate over the next 3 years to 5 years is 12.12 percent. The annual return on equity on the stock was 17.94 percent. The company has a high P/E ratio of 12.11, a P/B ratio of 2.11 and a P/S ratio of 0.58, suggesting that the company's stock is undervalued and has the potential to grow in the future. UNH is currently trading lower by 0.40 percent to $51.76 a share on Monday.


 

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